'Clearance Sales' Affected By Increased GST

Owing to the increase in sales tax on clothing brands in current budget, the burning trend of weekly or monthly sales seemed to be climbing down as compared to last few years

ISLAMABAD, (UrduPoint / Pakistan Point News - 18th Sep, 2019 ):Owing to the increase in sales tax on clothing brands in current budget, the burning trend of weekly or monthly sales seemed to be climbing down as compared to last few years.

General sales tax, varying from 14% to 17% from different brands, has actually lowered the capacity of middle and lower middle groups of the society to buy the branded clothes even from, often offered, clearance sales in different outlets and shopping malls.

Talking to APP, the sales manager of a famous clothing brand for women in Safa Mall, said that the purchasing power of middle class has lessened with the increase taxes. "Although, we don't charge the current GST on the items from previous years and they are being sold as all inclusive", he added.

He said these sales mostly target women as their potential customers. "During sales season, we used to call extra staff from our less busy branches in here, but this season it was normal selling week", he added.

Terming this trend a blessing in disguise, Psychologist Dr Rizwan Taj said that this was becoming a never-ending race for women which were depicting an unhealthy social behavioural pattern.

"Our social interactions were shrinking from "You look nice in this dress" to "Your dress is nice", he added.

He said that the problem was not with clothes. It's that shift in values that was concerning. "Even those from humble background try and buy those expensive brands just to enjoy the luxury or maybe to lessen the guilt of being not able to compete with the rich in other aspects", he said.

A regular buyer of these brands Ayesha said, "a large number of people still rely on these sales as they cannot afford costly brand new items", she said.

Ayesha, an accounts officer in a local bank, said that slamming these items with increased tax has only helped the retailers and weakened the purchasing power of working class.

"Big clothing brands manipulate the public in the name of sales and sell the old items on new increased prices on the pretext of increased 17%GST", she added.